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General Motors (GM) Stock Sinks As Market Gains: Here's Why

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General Motors (GM - Free Report) closed at $56.40 in the latest trading session, marking a -1.5% move from the prior day. The stock's performance was behind the S&P 500's daily gain of 0.58%.

Coming into today, shares of the an automotive manufacturer had lost 1.29% in the past month. In that same time, the Auto-Tires-Trucks sector gained 14.95%, while the S&P 500 gained 3.68%.

The investment community will be closely monitoring the performance of General Motors in its forthcoming earnings report. The company is scheduled to release its earnings on October 21, 2025. The company's upcoming EPS is projected at $2.32, signifying a 21.62% drop compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $44.19 billion, down 9.37% from the year-ago period.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $9.43 per share and a revenue of $180.22 billion, representing changes of -11.04% and -3.86%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for General Motors. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, there's been a 0.09% fall in the Zacks Consensus EPS estimate. General Motors is currently a Zacks Rank #3 (Hold).

Investors should also note General Motors's current valuation metrics, including its Forward P/E ratio of 6.07. For comparison, its industry has an average Forward P/E of 12.85, which means General Motors is trading at a discount to the group.

One should further note that GM currently holds a PEG ratio of 1.21. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Automotive - Domestic industry was having an average PEG ratio of 2.42.

The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. Currently, this industry holds a Zacks Industry Rank of 171, positioning it in the bottom 31% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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